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Social capital and the voluntary provision of public goods

Author

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  • Chakraborti, Rik
  • Maloney, Matt
  • Roberts, Gavin
  • Shogren, Jason F.

Abstract

Individual contributions to public good investments are subject to the problem of free riding. We investigate the possibility of overcoming the free-riding problem through creating social capital via communication. Using data from a public goods experiment, we empirically test the effectiveness of two commonly used types of communication interventions in various organizations—structured, goal-oriented communication and unstructured, free-form communication—in creating social capital. Although both types of communication are found to reduce free-riding, when players stay in the same groups before and after communication, unstructured communication brings voluntary contributions closer to the efficient level persistently; structured communication is less successful. In contrast, structured communication is more successful when players are allocated to different groups after communication; unstructured communication has a smaller impact on voluntary contributions in this case.

Suggested Citation

  • Chakraborti, Rik & Maloney, Matt & Roberts, Gavin & Shogren, Jason F., 2018. "Social capital and the voluntary provision of public goods," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 77(C), pages 196-208.
    • Handle: RePEc:eee:soceco:v:77:y:2018:i:c:p:196-208
    DOI: 10.1016/j.socec.2018.10.007
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    More about this item

    Keywords

    Social capital; Public goods; Free riding; Communication;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior

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